Trigger events
Trigger events define what cause the convertible to convert to equity. This is usually a significant funding round, IPO or change of control. What constitutes a ‘significant funding round’ will generally be set out in the terms and will require a certain amount of money to be invested. To put this in context, one example of a potential trigger event could be an equity funding round of at least £1 million (but this threshold might be lower for an earlier stage company).